30% of Medicare Pay via ACOs, Etc.

March 11, 2016

About 30 percent of Medicare payments are now being made via alternative payment models that tie reimbursement to the quality or value of care provided. The Centers for Medicare & Medicaid Services (CMS) said it reached this milestone in March, 2016, 11 months earlier than expected when 121 new Accountable Care Organizations (ACOs) joined Medicare, in addition to new participants in bundled payment and coordinated care arrangements.

The agency said that this is part of its effort to drive Medicare and the health care system at large towards rewarding quality of care as opposed to the quantity of care provided to beneficiaries. It intends to tie 50 percent of payments to these models by the end of 2018.

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